$,$$$,$$$ What Would You Do?????????? - Page 2

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[ARCHIVED THREAD] - $,$$$,$$$ What Would You Do?????????? (Page 2 of 2)

Posted: 6/22/2017 2:35:07 PM EDT

[#1]

I would talk to a CPA and find out the most tax advantageous way to do it.

Here's the deal…$1.9 million is substantial, but it is not powerball winnings either.

If you end up with something like $1.2 or 1.3M after taxes and what not, and invest that and do not touch the principle, you can safely earn 4-6% on that money, and bring in $50-60K or so per year as income. That being said people being what they are, and thinking "I'M RICH BIATCH" and go do stupid things like buy an expensive car, boat, house, etc. can blow through that money quickly and have nothing to show for it.

If it were ME…I'd look at how to minimize my tax exposure, get the money invested in something pretty conservative and do my best to live modestly off just the interest and not touch the principle…that means you need a CPA and a financial investment/trust/estate advisor.

Posted: 6/22/2017 2:36:08 PM EDT

[#2]

Lump sum, always the lump sum. If you die before the annuity pays out the entire value remaining goes into your estate, which may or may not have the cash to pay the taxes.

Posted: 6/22/2017 2:37:21 PM EDT

[#3]

everyone always says take the lump sum, but in truth the average lottery winner is better off taking an annual payout

because the average person is functionally retarded and has the judgment and self-restraint of a 4 year old

Recent statistics collected on 34 lottery winners:

45% started a business

44% spent all winnings within 5 years

The average family in the USA has no emergency savings and little or no retirement savings.

They do however have $15,000 in credit card debt.

Handing a 1.9 million lump sum to a an average person would be like handing it to some ghetto rats

Posted: 6/22/2017 2:38:56 PM EDT

[#4]

Quote History

Quoted:
I would talk to a CPA and find out the most tax advantageous way to do it.

Here's the deal…$1.9 million is substantial, but it is not powerball winnings either.

If you end up with something like $1.2 or 1.3M after taxes and what not, and invest that and do not touch the principle, you can safely earn 4-6% on that money, and bring in $50-60K or so per year as income. That being said people being what they are, and thinking "I'M RICH BIATCH" and go do stupid things like buy an expensive car, boat, house, etc. can blow through that money quickly and have nothing to show for it.

If it were ME…I'd look at how to minimize my tax exposure, get the money invested in something pretty conservative and do my best to live modestly off just the interest and not touch the principle…that means you need a CPA and a financial investment/trust/estate advisor.

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Why would someone pay taxes on non income moneys?

Posted: 6/22/2017 2:43:17 PM EDT

[#5]

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Damn that's awful.

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Quoted:
Lump sum.

Would start my own manufacturing business because I know what boys like.

https://www.youtube.com/watch?v=bsneH0mOq-0

Damn that's awful.

So you aren't a fan of early 80s music, I take it.

Posted: 6/22/2017 2:43:54 PM EDT

[#6]

Lump sum.

Imagine winning something like the Illinois Lottery, choosing to take annual payments, and they say *Oops, we're broke.* No money, and no recourse.

Posted: 6/22/2017 2:46:02 PM EDT

[#7]

Lump sum.
Disappear on land in the country.

Profit, in many many ways.

A.W.D.

Posted: 6/22/2017 2:46:59 PM EDT

[#8]

Lump sum. Something could happen to endanger the payments - death of source of payments/bankruptcy/other - or you could die long before the payments are scheduled to end.
Whenever I play the lottery I have no intention of taking the 25 year payouts for the same reasons. Seems stupid to accept annuities.

Posted: 6/22/2017 2:57:29 PM EDT

[#9]

Quote History

Quoted:
Lump sum and live off dividends.

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Yep, get your 6% and watch the market like a hawk, anything funny happen move it to a MM in an hour.

Posted: 6/22/2017 2:58:51 PM EDT

[#10]

Lump Sum, most definitely.

Hold back 1/4 of it for spending in you first year and invest the rest for a yearly "income". An investment return of just 5% would yield an income of $70K to $75K. Keep you job. Use the investment as "play money" or to add to retirement accounts or college funds for the kids/grand kids.

In the first year you should be able to get set for a comfortable life; pay off home, new vehicles/pay off vehicles, upgrade house, take a nice vacation. Then every year afterwards enjoy having that supplemental income of $70K plus whatever you make at your job until retirement.

Posted: 6/22/2017 3:05:06 PM EDT

[#11]

Out of curiosity, who manages the settlement?

If it's the company (and as mentioned before they could go bankrupt)...I'd say lump sum.

If it's managed by an outside company (i.e..you're getting interest based on a lump sum (smaller than they would have paid to you))...then the structured settlement may work (as mentioned by others if you're one to blow your money...).

AFARR

Posted: 6/22/2017 3:08:12 PM EDT

[#12]

Lump sum.
Invest 900k in rental properties and collect interest on the 1 million. Between interest and rental income I could collect at least 60K per year (rental property taxes, insurance, and matience paid for already).

Posted: 6/22/2017 3:12:36 PM EDT

[#13]

Quote History

Quoted:
Lump Sum, most definitely.

Hold back 1/4 of it for spending in you first year and invest the rest for a yearly "income". An investment return of just 5% would yield an income of $70K to $75K. Keep you job. Use the investment as "play money" or to add to retirement accounts or college funds for the kids/grand kids.

In the first year you should be able to get set for a comfortable life; pay off home, new vehicles/pay off vehicles, upgrade house, take a nice vacation. Then every year afterwards enjoy having that supplemental income of $70K plus whatever you make at your job until retirement.

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since inflation is around 3% a year, he could only draw the returns that exceed 3% as income

otherwise, inflation would eat the ass out of his nest egg

Posted: 6/22/2017 3:15:48 PM EDT

[#14]

Always take $/payment sooner rather than later.

And good luck, OP!!!

Posted: 6/22/2017 3:21:39 PM EDT

[#15]

In my experience, insurance settlements are not taxable and structured settlements net you more money than a lump sum (due to interest), in the long run. Whether you go with lump sum or structured settlement
usually depends on the injury and whether or not you can manage the money. If you will have continuing expenses due to your injury, for a prolonged time period (lifetime?), and you don't want to mess with handling the
settlement money on your own or getting someone to do it for you, maybe the structured settlement is the way to go. If you can handle managing the money yourself or paying someone to do it
for you, then the lump sum is the way to go. Depending on the interest rate, the structured settlement may not even be worth it. Lump sum. A bird in the hand vs two in the bush, right? Good luck.

Posted: 6/22/2017 3:23:44 PM EDT

[#16]

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Quoted:
Lump sum, because I would invest it.

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Posted: 6/22/2017 3:33:43 PM EDT

[#17]

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Quoted:
Why would someone pay taxes on non income moneys?

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Quoted:

Quoted:
I would talk to a CPA and find out the most tax advantageous way to do it.

Here's the deal…$1.9 million is substantial, but it is not powerball winnings either.

If you end up with something like $1.2 or 1.3M after taxes and what not, and invest that and do not touch the principle, you can safely earn 4-6% on that money, and bring in $50-60K or so per year as income. That being said people being what they are, and thinking "I'M RICH BIATCH" and go do stupid things like buy an expensive car, boat, house, etc. can blow through that money quickly and have nothing to show for it.

If it were ME…I'd look at how to minimize my tax exposure, get the money invested in something pretty conservative and do my best to live modestly off just the interest and not touch the principle…that means you need a CPA and a financial investment/trust/estate advisor.

Why would someone pay taxes on non income moneys?

Ive never gotten a settlement before...and am not a CPA.

Just assumed Uncle Sam would get his cut.

Posted: 6/22/2017 3:45:33 PM EDT

[#18]

At a fairly modest investment on that total, lump sum, you could never touch the principle $1.9M and live off ~$100K annually.

Posted: 6/22/2017 3:53:15 PM EDT

[#19]

More details what intrest are they paying holding your 1.9 million for 20 years. If it's not above 6% heck no if not 8% likely no. I don't think you are taxed for an injury reward right? You need accountant and tax guy. I would lump sum then conservatively invest and live off the dividends whatever they may be and they should be on the hook for continued medical needs.

Posted: 6/22/2017 3:54:54 PM EDT

[#20]

Lump sum and I would purchase an apartment complex using the $1.9mil as a down payment.

Posted: 6/22/2017 3:55:12 PM EDT

[#21]

Quote History

Quoted:
<------------ objective financial person

Financially, it depends on the structured settlement terms. Usually lump sum is less due to time value of money. Math needs to be done.

Financial planning wise, it depends on the goals of the individual. Does he or she want to start a business? Would require more up front $. Is more upfront $ needed overall for other things? Entire picture needs to be considered.

Behaviorally, it depends on the person, and whether or not he has a financial pro there to stop him from doing stupid shit. Pros cost about 1%. There is more than a 1% chance the client will do silly things with that much money. Therefore, the pro delivers value equal to or grater than the cost.

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Even after paying the professional there is still greater than a 1% chance they go out and do something stupid with the money, lol.

Posted: 6/22/2017 8:51:51 PM EDT

[#22]

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Quoted:
Even after paying the professional there is still greater than a 1% chance they go out and do something stupid with the money, lol.

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Trying (with a conspicuous lack of success) to protect people from the consequences of their own stupidity costs a gazillion dollars every year, and is a colossal fucking failure.

Posted: 6/22/2017 9:08:21 PM EDT

[#23]

Quote History

Quoted:
Always take lump sum.

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[ARCHIVED THREAD] - $,$$$,$$$ What Would You Do?????????? (Page 2 of 2)

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